Expat Tax Compliance

Georgia has become a popular destination for digital nomads, investors, and expats from all over the world. Many mistakenly believe that living in Georgia automatically means no taxes or only a 1% tax rate. In reality, Expat Tax Compliance in Georgia is regulated by strict rules, and violations can lead to financial penalties and blocked bank accounts. This service is designed for any foreigner living in Georgia and earning income, regardless of whether that income is local or foreign.

Assistance from a qualified tax lawyer is essential to correctly determine your tax residency, choose the optimal tax regime, and file declarations on time. Legal.ge offers access to specialists who ensure your full compliance with Georgian legislation.

What Does This Service Cover?

Tax services for foreign citizens cover the full cycle - from registration to declaration:

• Tax Residency Analysis: Determining residency status based on the 183-day rule and identifying the start date of residency.
• Registration with Revenue Service: Registering as a taxpayer, obtaining an ID number, and opening an authorized page (RS.ge).
• Tax Regime Selection: Consultation on obtaining "Small Business" (1% tax), "Micro Business" (0% tax), or Fixed Tax status.
• Income Declaration: Preparing and filing monthly or annual income tax returns within legal deadlines (e.g., by March 31 for the previous year).
• Property Tax Administration: Calculating and declaring property tax on real estate, land, and vehicles (which residents often forget).
• Consultation on Foreign Source Income: Detailed explanation of Article 82 - what counts as foreign source (tax-exempt) versus Georgian source income.

Common Scenarios

Typical situations where expats need this service:

• Digital Nomads: A freelancer arrived in Georgia, works on a laptop for European companies, and has stayed for more than 6 months. They automatically become a tax resident and are obliged to pay tax.
• Real Estate Owners: A foreigner bought an apartment in Tbilisi to rent out. They need to register and pay rental tax (5% or 20%).
• High Net Worth Individuals: A person with significant passive income from abroad who wants to benefit from Georgia's territorial tax system but needs precise qualification by income type.
• Late Filing: A foreigner didn't know they had to pay tax and received a penalty notice. They need a lawyer to resolve the dispute.

Georgian Legal Framework

Taxation of foreign citizens is regulated by the Tax Code of Georgia. Key provisions include:

• Article 34 (Tax Residency): A person is considered a resident if they are present in Georgia for more than 183 days during any continuous 12-calendar-month period.
• Article 82 (Exemptions): Exempts income received by a natural person from a foreign source. However, the correct legal definition of "foreign source" is crucial.
• Special Tax Regimes: Legislation provides preferential regimes (Small Business) for Individual Entrepreneurs.

Service Process

Working with a specialist on Legal.ge involves:

1. Audit: Checking your status, income types, and duration of stay in the country.
2. Registration: Registering at the Public Service Hall and Revenue Service if necessary.
3. Optimization: Finding legal ways to reduce taxes (e.g., expense deduction or special status).
4. Reporting: Filling out declarations and providing tax payment instructions.

Why Choose Legal.ge?

Many foreigners find it difficult to deal with Georgian bureaucracy due to language barriers and the specifics of the legislation. Legal.ge allows you to find English-speaking tax lawyers who will simplify your life. Specialists on our platform ensure that your tax history in Georgia is clean and trouble-free.